As the Nov. 3 election approaches, Salinas residents have received mailers both for and against candidates and ballot measure.
One of them, in all red capital letters, reads: “Sandoval’s Dirty Secret,” questioning incumbent District 5 City Councilmember Andrew Sandoval’s business experience noting that he reported more than $1 million in debt in a bankruptcy case. Most of the debt, nearly $940,000, was to the Internal Revenue Service.
On social media, Sandoval, who is running for his second term, addressed his 2022 bankruptcy filing.
“It’s not something I’m proud of but also something I’m not ashamed of,” he said in a video, noting that keeping a business afloat isn’t easy. “I’ve pushed so hard to try to provide extra business services, making sure we are helping small businesses.”
Sandoval and his wife, Ruth Benavides Sandoval, filed for bankruptcy after closing their store, Bella’s Bridal & ENS Tuxedos, previously located at Northridge Mall.
According to court records, the couple owed nearly $1.2 million in debt; nearly $940,000 of that was owed to the IRS, for years 2014 to 2022. Most of the amount owed to the IRS is for federal payroll taxes on Social Security and Medicare (WT-FICA) and federal unemployment (FUTA). According to the IRS' claim, they owed nearly $130,300 in income taxes. Another $183,800 was owed to the California Franchise Tax Board.
“I didn't file for many years, so I just accepted the IRS' estimate," Sandoval says.
They filed a Chapter 13 bankruptcy to reorganize their debt, and later converted the case to a Chapter 7 bankruptcy to discharge their debt.
In 2023, federal bankruptcy trustee ultimately approved a plan for the Sandovals to pay off $654,350 of their debt, according to court records.
Sandoval acknowledges there are various attack mailers against him.
“They're not criticizing any of my votes, actions, community engagement, anything related to the city; they're not, probably because they can't attack me on my record or my performance as a city council member,” Sandoval says. “I think that the experience of struggling in business, navigating the city, and everything has actually made me a much better city council member because I know some of the struggles that people face, especially around affordability."
The mailer informing prospective voters about Sandoval's bankruptcy case was paid for by SAFE Salinas, a PAC that has raised more than $100,000 this election cycle to support candidates including Sandoval's challenger, Irma Lopez. (The committee also supports Dennis Donohue for mayor and Margaret D'Arrigo for council.)
SAFE Salinas also reports spending more than $38,300 to oppose Sandoval's campaign. It has spent nearly $19,000 supporting Lopez.